Published on 15 Jan 2024 on Simply Wall St. via Yahoo Finance

Rocket Pharmaceuticals, Inc.'s (NASDAQ:RCKT) Shift From Loss To Profit

With the business potentially at an important milestone, we thought we'd take a closer look at Rocket Pharmaceuticals, Inc.'s (NASDAQ:RCKT) future prospects. Rocket Pharmaceuticals, Inc., together with its subsidiaries, operates as a multi-platform biotechnology company that focuses on developing gene therapies for rare and devastating diseases. The company’s loss has recently broadened since it announced a US$222m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$253m, moving it further away from breakeven. As path to profitability is the topic on Rocket Pharmaceuticals' investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Rocket Pharmaceuticals

Consensus from 11 of the American Biotechs analysts is that Rocket Pharmaceuticals is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$87m in 2026. The company is therefore projected to breakeven around 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 56%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.